Teledyne to buy Celeritek's defense division
Teledyne Technologies, through its subsidiary Teledyne Wireless, is to acquire Celeritek s defense electronics business for $33.0 million in cash.
Celeritek s defense business is based in Santa Clara, California, where it manufactures GaAs-based RF and microwave components and sub-assemblies for electronics warfare, radar, and other military applications.
On completion of the acquisition Teledyne will relocate this business to Mountain View, California, the location of its own defense business Teledyne Microwave.
Teledyne Technologies expects the acquisition of Celeritek s defense electronics division, which had sales of $19.7 million for the year ended 31 March 2004, to be neutral to this year s earnings.
"This acquisition would allow us to offer our defense customers a broader portfolio of microwave products and capabilities. We expect to obtain significant synergies through the consolidation of Celeritek s defense business with our current military microwave subassembly operations in Mountain View," said Robert Mehrabian, CEO of Teledyne Technologies.
Tamer Husseini, Celeritek s CEO added: "The divestiture of our defense electronics subsystems business will allow us to focus on designing and manufacturing high performance GaAs semiconductor components."
